Circular debt affects petroleum companies’ profits

ISLAMABAD: The Petroleum Division has said the circular debt has affected the profitability of the listed petroleum companies and their growth prospects.

Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin chaired a meeting on dividends to shareholders of the energy sector companies at the Finance Division on Monday.

The petroleum secretary gave a presentation on the issue of dividends by the petroleum listed companies and said that the low dividend payout ratio and mounting circular debt resulted in a significant drop in share prices, which is affecting the future growth and long-term sustainability of the petroleum listed companies.

The adviser discussed various measures to support the petroleum companies and advised the companies to make the best use of their resources.

He also directed the Petroleum Division to present a workable plan in the next meeting for the sustainability of the petroleum companies.

Finance secretary Yusuf Khan, managing director of the Oil and Gas Development Company Limited (OGDCL), and senior officers also attended the meeting.